While years in the making, foreign insurance providers will finally be given the green light to conduct business in Myanmar. According to the latest quarterly office report from Colliers International Myanmar, this recent development is set to boost demand for quality office spaces.

Mr. Paul Ahlgrim, Colliers’ Associate Director for Leasing and Brokerage Services, noted that the main offices of most of these companies will likely remain focused on downtown as this remains to be Yangon’s key business district. Foreign firms are most likely to choose Grade A or Grade B quality office space which will be for mostly managerial, underwriting and administration staff.

With the recent development, Colliers thinks it would be ideal for developers to remain strategic with both of their existing and future offerings. “The building quality complemented with a convenient location will remain key considerations among majority of tenants. Likewise, the improving quality is most likely to continue with future projects looking favorable,” said Mr. Paul Ryan Cuevas, Research Analyst for Colliers International Myanmar.

Meanwhile, the citywide occupancy rate improved by 3% qoq to end at 72% in Q4 2018. Now that rents are stabilising at a more reasonable level, movement towards better quality office spaces has and will become more pronounced.

“In the coming years, we are optimistic that both the occupancy and rental levels will further improve once the government rolls out more investment-related reforms and further liberalise the economy,” Mr. Cuevas explained. “Along with the existing business expansions and the eventual easing of restrictions in various sectors, Colliers projects the office market to witness increasingly robust demand in 2019 onwards,” Mr. Ahlgrim added.